Buying a business through DC Realty is tailored and personalised experience, we cater to everyone interested in buying a business. Whether you are a first time buyer looking to enter the market, a seasoned business owner looking to expand and diversify or a franchisor searching for franchisees – DC Realty will make the buying process as smooth and hassle free from start to finish and ongoing if required.
There is no cost when buying through DC Realty – the fee is paid by the seller.
Your knowledge, business experience, temperament, personal interests, and comfort level in a particular field all contribute deciding on which industry you should consider. Matching your abilities and interests to the industry you want to join is the first positive step to take.
It is the rare business these days that can be started with little investment. However, you do not need to to be a multi-millionaire in order to become a first-time business buyer. Options including buying a business from an owner who is willing to provide some of the financing or consider an equity loan on your home, bringing in one or more partners – friends or relatives who might fulfil an active role in the business or else act as passive investors. Lending institutions will also look at lending on a business depending on the business financials.
Of course we can! A Due Diligence process is carried out by the buyer as a condition of the Agreement for Sale and Purchase in order to satisfy themselves that the information we have provided is a true representation of the business they are buying. This process can vary in time-frames according to the size and complexities of each business. It is generally conducted in conjunction with their accountant / financial advisors.
Most of the businesses for sale are valued on the following;
Higher prices are generally paid for businesses in more desirable industries that are operating in a market perceived as low risk. These types of businesses are in strong demand. Therefore the value of the business will be greater than for one in a less sought after industry and perceived to have a higher risk factor attached to it, despite the fact that both businesses may make the same amount of money.
Most small owner-operated businesses are valued according to the cash surplus available to the owner. Depending on the industry this will vary. The amount will depend on factors such as the industry, location and length of time in business.
Larger businesses are valued on either a return on investment (ROI) or a price to earnings ratio (PE). Once again this will vary depending on the industry and the amount of net profit generated by the business.
You should make an appointment with one of our specialist business brokers who is knowledgeable in the industry sector that interests you. Our business brokers specialise in the sale of businesses giving you access to industry-specific knowledge. Your broker will ask specific questions in order to find the business that is best suited to your requirements. You could also start by doing a search for businesses for sale by using the DC Realty search bar.
The DC Realty broker will prepare the sale and purchase agreement for you. This is the document used for making an offer to purchase the business and needs to include special conditions to protect you throughout the process. Likewise the owner of the business will want to know that the confidentiality of his business is protected through this process.
You will also need to pay a deposit. By buying through a licenced Real Estate company such as DC Realty the deposit is held in a trust account until the agreement becomes unconditional.
Before signing the agreement it may be advisable to have your lawyer review the agreement.
Once you have signed the agreement it is then presented to the business owner who will either accept it or make the necessary alterations before returning the agreement to you for your acceptance or further alteration.
Your DC Realty business broker will liaise between both parties and often, through experience, bring solutions that can result in both parties reaching agreement.
Confidentiality is paramount and your DC Realty business broker will arrange a time with the business owner for you to inspect the business.
A physical inspection of the business should come at a time when you have considered the financial information given to you, and you are satisfied with this and wish to proceed further.
A professional business broker can provide you with many different business opportunities including some that you may never have considered. Frequently we have people buying businesses they had never considered buying until the business broker explained how this business could be suited to them. All DC Realty brokers have owned their own businesses, understand and relate to the process you as a buyer are going through and can provide you with helpful information on the business you are considering buying.
DC Realty brokers will prepare the necessary information, gather financial documentation and compile it in an information memorandum for you to review.
There is no cost to you in buying through a business broker; the fee is paid by the seller.